IDEAS home Printed from https://ideas.repec.org/p/srt/wpaper/2414.html
   My bibliography  Save this paper

Augmented and Unconstrained: revisiting the Regional Knowledge Production Function

Author

Listed:
  • Sylvie Charlot

    (GAEL UMR 1215, INRA; University of Grenoble, France.)

  • Riccardo Crescenzi

    () (London School of Economics, Spatial Economics Research Centre, UK.)

  • Antonio Musolesi

    () (Dept. of Economics and Management. University of Ferrara, Italy.)

Abstract

By adopting a semiparametric approach, the 'traditional' regional knowledge production function is developed in three complementary directions. First, the model is augmented with region-speci c time trends in order to account for endogeneity due to selection on unobservables. Second, the nonparametric part of the model relaxes the standard assumptions of linearity and additivity regarding the effect of R&D and human capital. Finally, the assumption of homogeneity in the effects of R&D and human capital is also relaxed by explicitly accounting for the differences between developed and lagging regions. The analysis of the genesis of innovation in the regions of the European Union unveils nonlinearities and threshold effects, complex interactions, and shadows effects that cannot be uncovered by standard parametric formulations.

Suggested Citation

  • Sylvie Charlot & Riccardo Crescenzi & Antonio Musolesi, 2014. "Augmented and Unconstrained: revisiting the Regional Knowledge Production Function," SEEDS Working Papers 2414, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2014.
  • Handle: RePEc:srt:wpaper:2414
    as

    Download full text from publisher

    File URL: http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/2414.pdf
    File Function: First version, 2014
    Download Restriction: no

    File URL: http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/2414.pdf
    File Function: Revised version, 2014
    Download Restriction: no

    References listed on IDEAS

    as
    1. Lydia Greunz, 2003. "Geographically and technologically mediated knowledge spillovers between European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(4), pages 657-680, December.
    2. Charlot, Sylvie & Duranton, Gilles, 2004. "Communication externalities in cities," Journal of Urban Economics, Elsevier, vol. 56(3), pages 581-613, November.
    3. Mairesse, Jacques & Mohnen, Pierre, 2010. "Using Innovation Surveys for Econometric Analysis," Handbook of the Economics of Innovation, Elsevier.
    4. Bronwyn Hall & Jacques Mairesse, 2006. "Empirical studies of innovation in the knowledge-driven economy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 289-299.
    5. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    6. Azomahou, Théophile & Mishra, Tapas, 2008. "Age dynamics and economic growth: Revisiting the nexus in a nonparametric setting," Economics Letters, Elsevier, vol. 99(1), pages 67-71, April.
    7. Sylvie Charlot & Gilles Duranton, 2006. "Cities and Workplace Communication: Some Quantitative French Evidence," Urban Studies, Urban Studies Journal Limited, vol. 43(8), pages 1365-1394, July.
    8. Roderik Ponds & Frank van Oort & Koen Frenken, 2010. "Innovation, spillovers and university--industry collaboration: an extended knowledge production function approach," Journal of Economic Geography, Oxford University Press, vol. 10(2), pages 231-255, March.
    9. Ernest Miguélez & Rosina Moreno & Jordi Suriñach, 2010. "Inventors on the move: Tracing inventors' mobility and its spatial distribution," Papers in Regional Science, Wiley Blackwell, vol. 89(2), pages 251-274, June.
    10. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
    11. Simon N. Wood, 2003. "Thin plate regression splines," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(1), pages 95-114.
    12. Blundell, Richard & Griffith, Rachel & Windmeijer, Frank, 2002. "Individual effects and dynamics in count data models," Journal of Econometrics, Elsevier, vol. 108(1), pages 113-131, May.
    13. Riccardo Crescenzi & Andrés Rodríguez-Pose & Michael Storper, 2012. "The territorial dynamics of innovation in China and India," Journal of Economic Geography, Oxford University Press, vol. 12(5), pages 1055-1085, September.
    14. Bengt-Åke Lundvall, 2007. "National Innovation Systems—Analytical Concept and Development Tool," Industry and Innovation, Taylor & Francis Journals, vol. 14(1), pages 95-119.
    15. Jasjit Singh & Ajay Agrawal, 2011. "Recruiting for Ideas: How Firms Exploit the Prior Inventions of New Hires," Management Science, INFORMS, vol. 57(1), pages 129-150, January.
    16. Richard Shearmur, 2011. "Innovation, Regions and Proximity: From Neo-Regionalism to Spatial Analysis," Regional Studies, Taylor & Francis Journals, vol. 45(9), pages 1225-1243, February.
    17. Hoderlein, Stefan & White, Halbert, 2012. "Nonparametric identification in nonseparable panel data models with generalized fixed effects," Journal of Econometrics, Elsevier, vol. 168(2), pages 300-314.
    18. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, July.
    19. repec:fth:harver:1473 is not listed on IDEAS
    20. Rosina Moreno & Raffaele Paci & Stefano Usai, 2005. "Spatial Spillovers and Innovation Activity in European Regions," Environment and Planning A, , vol. 37(10), pages 1793-1812, October.
    21. Papke, Leslie E., 1994. "Tax policy and urban development : Evidence from the Indiana enterprise zone program," Journal of Public Economics, Elsevier, vol. 54(1), pages 37-49, May.
    22. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
    23. Richard Shearmur, 2012. "The Geography of Intrametropolitan KIBS Innovation: Distinguishing Agglomeration Economies from Innovation Dynamics," Urban Studies, Urban Studies Journal Limited, vol. 49(11), pages 2331-2356, November.
    24. Koenker, Roger, 2004. "Quantile regression for longitudinal data," Journal of Multivariate Analysis, Elsevier, vol. 91(1), pages 74-89, October.
    25. Mammen, Enno & Støve, Bård & Tjøstheim, Dag, 2009. "Nonparametric Additive Models For Panels Of Time Series," Econometric Theory, Cambridge University Press, vol. 25(02), pages 442-481, April.
    26. S. N. Wood, 2000. "Modelling and smoothing parameter estimation with multiple quadratic penalties," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 62(2), pages 413-428.
    27. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    28. Augustin, Nicole H. & Musio, Monica & von Wilpert, Klaus & Kublin, Edgar & Wood, Simon N. & Schumacher, Martin, 2009. "Modeling Spatiotemporal Forest Health Monitoring Data," Journal of the American Statistical Association, American Statistical Association, vol. 104(487), pages 899-911.
    29. Breschi, Stefano & Lissoni, Francesco, 2001. "Knowledge Spillovers and Local Innovation Systems: A Critical Survey," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 975-1005, December.
    30. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
    31. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    32. Riccardo Crescenzi & Andrés Rodriguez-Pose & Michael Storper, 2007. "The territorial dynamics of innovation: a Europe-United States comparative analysis," Journal of Economic Geography, Oxford University Press, vol. 7(6), pages 673-709, November.
    33. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731, March.
    34. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-970, December.
    35. Michael Storper & Anthony J. Venables, 2004. "Buzz: face-to-face contact and the urban economy," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 351-370, August.
    36. Carlos Ordás Criado & Simone Valente & Thanasis Stengos, 2009. "Growth and the pollution convergence hypothesis: a nonparametric approach," CEPE Working paper series 09-66, CEPE Center for Energy Policy and Economics, ETH Zurich.
    37. Antonio Musolesi & Jean-Pierre Huiban, 2010. "Innovation and productivity in knowledge intensive business services," Journal of Productivity Analysis, Springer, vol. 34(1), pages 63-81, August.
    38. Simon N. Wood, 2004. "Stable and Efficient Multiple Smoothing Parameter Estimation for Generalized Additive Models," Journal of the American Statistical Association, American Statistical Association, vol. 99, pages 673-686, January.
    39. Griliches, Zvi, 1986. "Productivity, R&D, and the Basic Research at the Firm Level in the 1970's," American Economic Review, American Economic Association, vol. 76(1), pages 141-154, March.
    40. Jeffrey M. Wooldridge, 2005. "Fixed-Effects and Related Estimators for Correlated Random-Coefficient and Treatment-Effect Panel Data Models," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 385-390, May.
    41. Barbara Dettori & Emanuela Marrocu & Raffaele Paci, 2012. "Total Factor Productivity, Intangible Assets and Spatial Dependence in the European Regions," Regional Studies, Taylor & Francis Journals, vol. 46(10), pages 1401-1416, November.
    42. Chamberlain, Gary, 1982. "Multivariate regression models for panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 5-46, January.
    43. Raffaele Paci & Emanuela Marrocu, 2013. "Knowledge Assets and Regional Performance," Growth and Change, Wiley Blackwell, vol. 44(2), pages 228-257, June.
    44. Jung Won Sonn & Michael Storper, 2008. "The increasing importance of geographical proximity in knowledge production: an analysis of US patent citations, 1975 – 1997," Environment and Planning A, Pion Ltd, London, vol. 40(5), pages 1020-1039, May.
    45. Simona Iammarino, 2005. "An evolutionary integrated view of Regional Systems of Innovation: Concepts, measures and historical perspectives," European Planning Studies, Taylor & Francis Journals, vol. 13(4), pages 497-519, June.
    46. Zucker, Lynne G & Darby, Michael R & Armstrong, Jeff, 1998. "Geographically Localized Knowledge: Spillovers or Markets?," Economic Inquiry, Western Economic Association International, vol. 36(1), pages 65-86, January.
    47. Harding, Matthew & Lamarche, Carlos, 2014. "Estimating and testing a quantile regression model with interactive effects," Journal of Econometrics, Elsevier, vol. 178(P1), pages 101-113.
    48. Acs, Zoltan J & Audretsch, David B & Feldman, Maryann P, 1992. "Real Effects of Academic Research: Comment," American Economic Review, American Economic Association, vol. 82(1), pages 363-367, March.
    49. Heckman, J.J. & Hotz, V.J., 1988. "Choosing Among Alternative Nonexperimental Methods For Estimating The Impact Of Social Programs: The Case Of Manpower Training," University of Chicago - Economics Research Center 88-12, Chicago - Economics Research Center.
    50. Edward J. Malecki, 2010. "Everywhere? The Geography Of Knowledge," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 493-513.
    51. Jacques Mairesse & Pierre Mohnen, 2002. "Accounting for Innovation and Measuring Innovativeness: An Illustrative Framework and an Application," American Economic Review, American Economic Association, vol. 92(2), pages 226-230, May.
    52. Leora Friedberg, 1998. "Did Unilateral Divorce Raise Divorce Rates? Evidence from Panel Data," NBER Working Papers 6398, National Bureau of Economic Research, Inc.
    53. Ruppert,David & Wand,M. P. & Carroll,R. J., 2003. "Semiparametric Regression," Cambridge Books, Cambridge University Press, number 9780521785167, May.
    54. Edward E Leamer & Michael Storper, 2001. "The Economic Geography of the Internet Age," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(4), pages 641-665, December.
    55. M. Hashem Pesaran, 2006. "Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure," Econometrica, Econometric Society, vol. 74(4), pages 967-1012, July.
    56. E. Marrocu & R. Paci & S. Usai, 2011. "Proximity, Networks and Knowledge Production in Europe," Working Paper CRENoS 201109, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    57. Thomas Doring & Jan Schnellenbach, 2006. "What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 375-395.
    58. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
    59. Neil M. Coe, 2005. "Putting knowledge in its place--a review essay," Journal of Economic Geography, Oxford University Press, vol. 5(3), pages 381-384, June.
    60. Riccardo Crescenzi, 2005. "Innovation and Regional Growth in the Enlarged Europe: The Role of Local Innovative Capabilities, Peripherality, and Education," Growth and Change, Wiley Blackwell, vol. 36(4), pages 471-507.
    61. Simon N. Wood, 2013. "On p-values for smooth components of an extended generalized additive model," Biometrika, Biometrika Trust, vol. 100(1), pages 221-228.
    62. Longhi, Christian & Musolesi, Antonio & Baumont, Catherine, 2014. "Modeling structural change in the European metropolitan areas during the process of economic integration," Economic Modelling, Elsevier, vol. 37(C), pages 395-407.
    63. Simon N. Wood, 2008. "Fast stable direct fitting and smoothness selection for generalized additive models," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 70(3), pages 495-518.
    64. Guilkey, David K & Lovell, C A Knox & Sickles, Robin C, 1983. "A Comparison of the Performance of Three Flexible Functional Forms," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 591-616, October.
    65. Stefano Breschi & Francesco Lissoni, 2009. "Mobility of skilled workers and co-invention networks: an anatomy of localized knowledge flows," Journal of Economic Geography, Oxford University Press, vol. 9(4), pages 439-468, July.
    66. Mario A. Maggioni & Mario Nosvelli & Teodora Erika Uberti, 2007. "Space versus networks in the geography of innovation: A European analysis," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 471-493, August.
    67. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    68. Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 321-359, October.
    69. Lamarche, Carlos, 2010. "Robust penalized quantile regression estimation for panel data," Journal of Econometrics, Elsevier, vol. 157(2), pages 396-408, August.
    70. Ruppert,David & Wand,M. P. & Carroll,R. J., 2003. "Semiparametric Regression," Cambridge Books, Cambridge University Press, number 9780521780506, May.
    71. Jeremy Howells & John Bessant, 2012. "Introduction: Innovation and economic geography: a review and analysis," Journal of Economic Geography, Oxford University Press, vol. 12(5), pages 929-942, September.
    72. Kevin Morgan, 1997. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 491-503.
    73. Giampiero Marra & Simon N. Wood, 2012. "Coverage Properties of Confidence Intervals for Generalized Additive Model Components," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 39(1), pages 53-74, March.
    74. Breandán Ó hUallacháin & Timothy F. Leslie, 2007. "Rethinking the regional knowledge production function," Journal of Economic Geography, Oxford University Press, vol. 7(6), pages 737-752, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Innovation; Europe; R&D; Regional knowledge production function; Semiparametric models;

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:srt:wpaper:2414. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alessandro Palma). General contact details of provider: http://www.sustainability-seeds.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.